PHL stocks flat on profit-taking
Philippine shares closed flat Monday, weighed by profit-taking while its Asian peers posted gains on US and European economic developments.
“We didn’t really see a broadening in the market. It is quite unusual that given that other Asian markets pretty much held up in their game,” said Juanis Barredo, marketing vice president for CitisecOnline Brokers.
"Asian stocks rallied to a three-month high Monday after the United States reported stronger-than-expected jobs data after three months of weak employment, according to a Reuters report."
The main PSEi slid 1.75 points or 0.03 percent to close at 5,284.16.
The index weighed down by declines in blue chips Philippine Long Distance Telephone Company and Energy Development Corp. at 1.02 percent and 2.55 percent, respectively, said Barredo.
“Index is weathered down at practically unchanged values,” he added.
During the morning session, Monday’s trading was broad-based on back of good leads from resolving the euro debt crisis, Barredo noted.
However, profit-taking came as usual after the market took a surge. The tendency is there to cash in on gains on the perception that the market is overvalued at this point, the CitisecOnline marketing executive said.
AB Capital Securities Inc. equities analyst Gregg Ilag said most Philippine shares are considered expensive than those in other Asian markets.
Ilag said the valuation of Philippine stocks is “18 times the price to earnings trading 12 months.”
The equities analyst noted market participation rate was moderate today.
More than 1.89 billion shares valued at P4.552 billion were traded.
Losers led winners 83 to 79, with 42 issues unchanged. — VS, GMA News
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